Krugman points out that disinflationary trends are pointing to the conclusion that we’ll shortly be in the negative range by at least some measures. And I wouldn’t personally get too excited about the significance of the number zero in this context. The point is that inflation has been running below the Fed’s target rate for a while now so what we ought to be doing is running above the target rate for a while until we catch-up with where the price level ought to be. Instead, things are moving in the other direction.

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